QUESTI

ONBANK

PRI
NCI
PLESOFI
NSURANCE

SEM –I
II

Uni
t–I

Mul
ti
pleChoi
ceQuest
ions

1.Insur
anceprov
idessecur
it
yagai
nst……………. (
c)
(a)Risk (
b)Losses (c)Both(
a)&(b) (d)Noneoft
hem

2.Theinsureragr
eestocompensatethei
nsur
edinconsi
der
ati
onofasum ofmoney
i
scall
ed
(
a)
(a)Pr
emi um (b)Pol
i
cy ( c)Subj
ectmatt
er (d)None

3.Acontractofi
nsur
ancei
sa……………….Agr
eement ( a)
(a)Cont
ingent (
b)Const
ant(
c)bot
h (d)Noneoft
hese

4.TheLif
eInsuranceCor
porat
ionofI
ndi
a(LI
C)wasfor
medi
n…………….
(b)
(a)1952 (
b)1956 (
c)1957 (
d)1962

5.…………. .wasthefir
stIndi
anInsur
anceCompany(a)
(a)BombayMut ualAssuranceSociet
yLt
d. ( b)BombayI
nsur
anceSoci
etyLt
d.
(c)I
nsuranceRegulator
yDev el
opmentAuthor
it
y
(d)GeneralI
nsuranceCorporat
ion

6.Riski
sevaluatedonthebasi
sof…………..t
heory (
c)
(a)Vari
abi
l
ity(b)Cont
ingency ( c)Pr
obabi
li
ty (
d)Al
l

7.From thefoll
owing,
whi
chisnotaty
peofri
sk? (
d)
(a)Speculat
iveri
sks (b)Dynami
cri
sks (c)Fundament
al (
d)Quant
it
ati
ve

8.Insur
ancei
sawr i
tt
enagreementbetweenthei
nsur
erandt
he……………… (
d)
(a)People (b)I
ndivi
dual
s (
c)Inst
it
uti
ons (d)I
nsur
ed

9.Humanl i
feisthesubj
ectmatt
erofacontr
actof……………….. (
a)
(a)Li
feassurance (b)Fi
rei
nsurance (c)Mari
neinsur
ance (
d)Non–Li
fe
i
nsurance

10.Expandedform ofIRDAi s……………. (

a)
(a)I
nsuranceRegulatoryDevelopmentAuthori
ty
(b)I
nsuranceReformsDev elopmentAct
(c)I
nsuranceRestructur
eDev elopmentAct
(d)I
ndianRe-i
nsuranceDev elopmentAuthori
ty

11.LI
CMeans…………… (
b)

1
(
a)Li
feI
ndiaCorpor
ati
on (b)Li
feI
nsur
anceCor
por
ati
onofI
ndi
a
(
c)Li
feI
nsuranceCont
ract(
d)Noneoft
hese

12.Marinei
nsurancemaycoverl
ossordamaget ot
he…………. (d)
(a)Shi
p (
b)Cargo ( c)Anyothersubj
ectofMar
ineadv
ent
ure (
d)Al
lof
these

13.TheLi
feI
nsur
ancecont
racti
sexpr
essedi
nadocumentknownas………… (
b)
(a)Pr
emium (
b)Pol
icy ( c)I
ndemni
ty (
d)Noneoft
hese

14.……………….i sconcernedwi
thover
seastrade (
c)
(a)Li
feInsurance (b)Non-l
i
fei
nsurance (c)Mar
inei
nsur
ance (
d)
Fir
einsurance

15.………………..r
iski
sconsideredasuncontrol
l
ableri
sk.
(c)
(a)Pr
icer
isk (b)Pol
it
icalr
isk (c)Pureri
sk (
d)Cr
edi
tri
sk

16.……………..coversacci
dentswhi
charenotr
est
rict
edtoonespeci
fi
cpr
operty
.(b)
(a)Cropi
nsurance (b)Casual
tyi
nsur
ance (
c)Av i
ati
oni
nsur
ance (d)Cri
me
i
nsurance

17.………………meansnotgett
inginvol
vedi
nanyact
ivi
ti
eswhi
chcont
ainsri
sk.(c)
(a)Ri
skcont
rol (
b)Riskfinanci
ng (c)Ri
skavoi
dance (
d)Ri
skreducti
on

18.Whichoft
hef
oll
owingareinsur
ancei
ntermedi
ari
es? (
d)
(a)Agent
s (b)Broker
s (
c)Insur
ance (d)Al
ltheabov
e

19.Val i
dconsiderat
ion,fr
eeconsent
,legal
i
tyofobj
ect
,legalr
elat
ionshipar
e
essentialsof
………….cont r
act. (a)
(a)LifeInsur
ance ( b)Mari
neInsur
ance (
c)Fi
reInsur
ance ( d)Health
Insurance

20.Theamendment
smadebyIRDAi
nwhichoft
hefoll
owi
ngacts (C)
(a)GI
CAct,1972 (
b)LI
Cact ( C)
both(
a)and(b) (d)MRTPact

21.…………………… t ypeoffi
rmstaker
iskposit
ivel
yandconsi deritasabusi
ness
opport
uni
tyrat
herthanapr
obl
em (a)
(a)Ri
sktr
ansfor
mer s (b)Eff
ici
entenhancer
s
(c)Ri
skcont
roll
ers (d)Ri
skmanager s

22.Beforepr
ivat
elyi
nsuri
ngapur eri
sk,
the…………………requir
ementsmustbeful
fi
ll
ed.
(a)Largenumberofexposureunit
s (b)Thelossmustbeacci
dent
al (d)
(c)Lossshoul
dnotbecat ast
rophi
c (d)All
theabove

23.Submitt
ingafraudul
entcl
aimtocol
l
ectthei
nsuranceamountfrom theinsur
er,
is
agoodexampl eof……………………………. . (
c)
(a)Physi
calhazar
d( b)Moral
ehazar
d ( c)Mor
alhazard ( d)Legalhazard

24.I
nsur
ance i
s consi
der
ed as a ……………….
.cont
ract
,as onl
y one per
son i
s

2
accountabl
eforthelegal
act
ionsi
nthecont
ract
.
(
c)
(a)Al
eatorycontr
act (b)Condi
tional
cont
ract
(c)Uni
later
alcontr
act (d)Contr
actofAdhesi
on

25.Whichoneoft
hef
oll
owi
ngisnotafunct
ionofi
nsurer
? (
d)
(a)Pr
oducti
on (
b)Underwr
it
ing ( c)Ratemaki
ng (
d)Noneofthe
above

26.Whichoneoft hef
oll
owi
ngi
snotaf
eat
ureofinsur
ancecontr
act? (
b)
(a)Al
eatorycontr
act (
b)Unconditi
onalcont
ract
(c)Uni
lat
eralcontr
act (
d)ContractofAdhesi
on

27.Whichofthefol
lowi
ngarebenef
it
sofinsur
ancetosociety? (
d)
(a)Reduceworr
iesandfear (b)Pr
eventlosses
(c)Enhancescr
edit (d)Allt
heabove

28.……………… pr ovi
det hebenefi
ttoinsuredto claim fr
om theinsur
eranyl
oss
i
ncurr
edduet othenegl
igenceoft
hir
dparty.
(c)
(a)Pr
inci
pleofutmostgoodfai
th (b)Pri
ncipl
eofcontri
buti
on
(c)Pr
inci
pleofsubr
ogation (
d)Princi
pleofi
ndemnit
y

29.Thedat
eonwhi
chani nsurancepol
icycomestoanendi sr
efer
redtoas, (
c)
(a)Dat
eofclai
m (b)surrenderdat
e ( c)Expi
rat
iondat
e (d)premium pay
ment
date

30.Apersonoranorganizati
oncov
eredorpr
otect
edunderaninsur
ancepol
i
cyi s
knownas………………….
. (
b)
(a)I
nsur
er (b)Insured (
c)Bai
l
er (d)Pay
ee